Correlation Between Ab Intermediate and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Ab Intermediate and Astor Longshort at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ab Intermediate and Astor Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Intermediate Bond and Astor Longshort Fund, you can compare the effects of market volatilities on Ab Intermediate and Astor Longshort and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ab Intermediate with a short position of Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Intermediate and Astor Longshort.
Diversification Opportunities for Ab Intermediate and Astor Longshort
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ABQZX and Astor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ab Intermediate Bond and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort and Ab Intermediate is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ab Intermediate Bond are associated (or correlated) with Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Ab Intermediate i.e., Ab Intermediate and Astor Longshort go up and down completely randomly.
Pair Corralation between Ab Intermediate and Astor Longshort
Assuming the 90 days horizon Ab Intermediate Bond is expected to under-perform the Astor Longshort. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Intermediate Bond is 2.42 times less risky than Astor Longshort. The mutual fund trades about -0.53 of its potential returns per unit of risk. The Astor Longshort Fund is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,271 in Astor Longshort Fund on December 28, 2024 and sell it today you would lose (8.00) from holding Astor Longshort Fund or give up 0.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 16.67% |
Values | Daily Returns |
Ab Intermediate Bond vs. Astor Longshort Fund
Performance |
Timeline |
Ab Intermediate Bond |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Astor Longshort |
Ab Intermediate and Astor Longshort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ab Intermediate and Astor Longshort
The main advantage of trading using opposite Ab Intermediate and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Intermediate position performs unexpectedly, Astor Longshort can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Astor Longshort will offset losses from the drop in Astor Longshort's long position.Ab Intermediate vs. Pace International Emerging | Ab Intermediate vs. Sa Emerging Markets | Ab Intermediate vs. Saat Moderate Strategy | Ab Intermediate vs. Doubleline Emerging Markets |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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